Archive for September, 2009

Local Marketing – Setting Goals

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Local Marketing programs are intended to get “better results,” but what exactly does that mean to you? Understanding who you are trying to reach and what behavior you are trying to influence, are critical to a successful outcome.

Think of Local Marketing as a series of “Micro-Marketing” events within a single store, where each campaign is targeted at a distinct customer interest. Once you accomplish this, you can start framing your objectives. While you can begin with a broad business target (for example, increasing store sales by X %), don’t count on that type of benchmark to get results. The program goals must be as specific as the local marketing campaigns; micro-marketing efforts require “micro-goals.” The goals must state who you are targeting (which customer attribute) and what behavior you wish to influence among these consumers. The more specific you can be about the who and the what, the more likely you will be able to implement a Local Marketing campaign that works.

How specific can you be about who you are targeting? Do you have customer attributes collected that help you identify their interests and preferences? (For example, “parents with young children” would be a much more useful attribute than just “parents” or “customers”) You may be limited in the amount of data that you have collected about your customers, but don’t worry. It takes time, patience and determination to accumulate this type of information. Just start with the data that you have and continue to build upon it.

Do you know exactly what behavior you are trying to influence? For example, are you trying to:

  • Attract new customers into a store
  • Entice old customers back to the store
  • Motivate customers to return more frequently
  • Encourage customers to spend more each visit
  • Drive customers to buy specific items
  • Encourage customers to say positive things about you
  • Raise customer satisfaction

Once you have defined a list of specific Local Marketing goals for each store, you are ready to start the process of determining the how of Local Marketing: Messaging and Media. In my next posts, I will explore a range of strategies for getting real results.

As a final note, please keep in mind that Local Marketing is not an event, but instead is a process of defining the who, what and how of targeting the interests and preferences that drive customers to act. Developing this process into a business routine with the right tools can make your efforts easier to accomplish – and prove to be a significant competitive advantage.

Local Marketing – Profiling

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Store profiling is a critical part of local marketing. As you may know, store profiling is the process of collecting information about a retail location with the purpose of creating more targeted and relevant messaging.

There are an endless number of attributes that can be profiled for this purpose, such as:

  • Physical Attributes – Store type (free-standing, mall, in-line), drive-thru capabilities, store size, layout type, etc.
  • Merchandising Attributes – The types of signs, fixtures and sizes
  • Product Offering – Details regarding specific product lines or menu offerings
  • Price Points – Specific product prices by store
  • Consumer Demographics
    • interests
    • age groups
    • ethnic groups
    • language
  • Regional – Weather, landscape, seasonal
  • Local Signage Ordinances – Laws on exterior banners, posters, yard signs and other marketing materials
  • Location – Proximity to high school, hospital, office buildings, highway

 

Collecting this information is a gradual process. I have found that most clients have some of this information; however, the data often is scattered or incomplete. It is amazing how much information is available if you collect all the data held in spreadsheets and departmental databases throughout your organization. This data can be gathered and loaded into a location profiling database (Synq Solutions calls this process Intelligent Profiling) that can be leveraged immediately for marketing purposes. The idea that you can use the data that you already have, and then work to improve and expand the depth of your location profiling data is a key concept of successful local marketing.

Building your profile database is an evolutionary process. It is also one where you have to weigh the cost of collecting and maintaining data against the marketing benefits. For example, if you want to obtain a very accurate picture of the merchandising configuration of each of your stores, you could have a team of specialists visit each location and collect that data; however the cost of this approach could exceed $500 per location. Alternately, you could mail paper surveys or conduct telephone interviews to store managers at a much lower cost. While this approach wouldn’t be as accurate or complete, it may make the most business sense.

Demographic data on your customers can be obtained by analyzing population data from third-party sources or it can be collected through direct surveying of your customers. The trade-off between data quality and cost is the deciding factor.

I generally recommend that clients start by using the data they have or obtaining it at a low cost. Then, as you learn to use the information to build and execute effective marketing programs, the value of improving the data quality will be more than offset by the cost of collecting the information.

This evolutionary approach requires flexible tools, so make sure you have partners with capabilities that allow you to quickly adapt your profiling database to new approaches as your needs change.

I have explored the concept of Location Segmentation and the many ways that you can collect information for Profiling; however, doing any of this without a goal in mind is likely to end up with bad results. In my next post, I will talk about the goals of Local Marketing and how they can affect your approach to Segmentation and Profiling.